Research On Risk Analysis Of Overseas Projects Contracting

Since China joined WTO,Chinese enterprises participate in international engineering constructing project in more than 200 countries in the world,involving multiple fields of petrochemical,metallurgy,coal,electricity,transportation and water conservancy.It is not only an inevitable choice of market competition,but also an inevitable requirement for Chinese enterprises to go out.In the double background of deepen of economic globalization and development of open and inclusive economic mode,Chinese enterprises can not be able to stay out of participating in international engineering constructing market.In order to seize the opportunity and meet the challenge,Chinese international project contractors need to learn advanced management experience from foreign project contractors.They have to do timely detection and risk assessment,pay attention to risk prevention role in risk management.Basing on the full study of international project risk management literature,this paper takes the company HY ' s electric power construction EDEVU project in Papua New Guinea for example according to the present situation of Chinese international project constructing,then analyzes the type of the project risks as well as using the method of AHP to evaluate project risk.Finally,basis on the risk management experiences and lessons deeply,we put forward integrated risk prevention measures for international project contractors.In this paper,we firstly review the current project risk management research from three aspects:risk identification,risk assessment and risk response.Secondly,we review the theory of risk management of international engineering contracting projects.From the internal project risk and external project risk,we classify risk types and give detailed description of various types of risk,sort out the overseas engineering contracting project risk management risk identification.Then,we analyze the situation of Chinese international engineering project in Papua New Guinea market.Thirdly,we take the company HY' s electric power construction EDEVU project in Papua New Guinea for example,based on the external and internal perspective,we evaluate the project risks.The external risks include political risk,economic risk,legal risk,social cultural and natural risk.The internal risks contain the early project risk and contractual risk.This paper puts forward the risk response experience from aspects of external and internal risk,respectively.And on this basis,combining with the basic principle of analytic hierarchy process(AHP),the method was applied to risk assessment for the project contract of Papua New Guinea EDEVU hydropower station,according to sorting weight vector in the AHP method,HY company,in the project construction of Papua New Guinea EDEVU hydropower,need to focus on payment risk and political risk.Finally,according to the case study,we propose several risk prevention suggestions:buying insurance,establishing market intelligence system,familiar with the local legal system,establishing the risk response plan,bidding management plan,perfect contract management procedures,widening the pay channels,master tax system.It can truly give experience for international project contractors to "going out".